'Period of stabilisation' welcome as property prices in Dublin flat over last year - DNG
PROPERTY prices in the capital were flat over the last year, according to a leading estate agency.
DNG said its latest quarterly market report found that average prices in Dublin rose by just 0.9pc in value in the year to this month.
But prices were unchanged in the first three months of the year.
Apartment values across the city increased only marginally in the three months to March.
Over the last year the price of apartments is up 1.4pc, according to the DNG House Price Gauge.
The estate agency said the data continues a trend of moderation in the rate of growth that has been evident over the last few months.
Central Bank lending limited were cited as the main reason property prices have stagnated in the capital. Prices have risen so much over the past few years that buyers can no longer afford to borrow enough to afford them.
A greater supply of new homes is also depressing prices.
However, starter homes favoured by first-time buyers saw stronger price appreciation than the average.
This is down to strong demand from those seeking to buy their first home, according to director of research at DNG Paul Murgatroyd.
He said: “It is clear that we are now in a period of stabilisation in the Dublin residential market in terms of price growth which is to be welcomed.
“For the last number of years prices have risen consistently, however, the tide has now turned in most segments of the market and the rate of price inflation has eased back considerably which is good news for those looking to buy.”
The report highlights how homes in Dublin valued up to €300,000 increased by 3.3pc over the last year.
Properties over the €500,000 level only increased by 0.1pc over the same period.
Homes valued above that level remain 44pc below their peak level.
On the other hand, properties priced between €300,000 and €500,000 have recovered approximately 75pc of their value.
Only west Dublin saw an increase in values during first quarter, with other areas of the city recording small decreases in the period.
Chief executive of DNG Keith Lowe explained that there are two primary factors influencing demand and prices in the resale market.
“It is clear that the Central Bank’s mortgage lending rules which limit borrowers to loan amounts of three-and-a-half times income unless an exemption can be secured is having an impact on what buyers are able to pay for properties.
“Furthermore, the substantial increase in new dwelling completions across the capital, and the increased level of resale stock available for purchase in recent months, are both contributing to the levelling out we are seeing in house price inflation across the city.”